Will a promise of a job be sufficient to obtain a credit card when i have zero credit rating.

by 0123ren 08 February 2009 |

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I am a student in his final year at university and have just been offered (and accepted) a graduate engineering job that pays £23k per year which i will start in july. However, this may be the last time I see my uni pals. So, as in the true style of students who complain about how little money they get to live on whilst spending £100 per week on drink we have booked a lovely 2 week holiday in Ibiza in a shabby looking, misrated, 3* hotel (no expense spared). I literally have no money to spend and was planning on slamming it on a credit card (I quite like the look of Virgins 6 month interest free on puchases option), I have never borrowed before so im quite certain my credit rating is zilch. Will i be able to obtain a credit card with a contract to a job in leu, and does anyone have any advise on which credit card would be most suited to me, for example a card that provides free comprehensive travel insurance.

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karatekate posted
Well done for securing employment in these hard times however I think your chances of getting a credit card based on an 'offer' of employment are pretty low - the problem you have is that whilst you want to spend NOW, you have no means to pay back NOW - or until your first pay packet arrives presumably at the end of July....

The other problem is that whilst you have an offer of employment, the company concerned could withdraw it - I have seen it done. If they begin to feel the pinch, if they have a 're-structuring' then suddenly they find that the business cannot support your position - voila, the offer can be withdrawn (even if you have accepted it); I believe that the law of contract (offer and acceptance)doe not apply here, as you will never actually work for the company, and they can withdraw a month before you start, therefore giving you time to 'secure other employment'.

So, with this in mind, I doubt that the credit card companies would see you as a good risk; many students have credit card throughout Uni and have built a credit record - do you have a mobile Phone - is it on contract? If so, this would have built your credit record, that may help?

Once you have a work history, tax history ad credit history (Contract mobile phone is better than nothing at all - don;t go into debt just to get a history!) then you stand a much better chance.

12 months ago, credit card companies would have thrown cards at you, but now its a very different story and they are all very wary of new debt.

Enjoy Ibiza and don't worry about the hotel - you only sleep there!

Posted on 08 February 2009 | Love 0 loves Report
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MikeGG1 posted
Have you got a student bank account? If so, you should be able to get a credit card from them. It may not be a 0% card, but you have to start somewhere. Unfortunately, you have to get in debt and repay it before you can get a good record. Start now because it is a few months before the summer and, if you repay in full monthly, your credit rating will have improved before the summer.
Posted on 08 February 2009 | Love 0 loves Report
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highlifeinspain posted
I am fairly certain that I have stayed in said hotel but as a previous poster said, you will probably only sleep there. Can I urge you, at least until you start your job that you do not "Slam" the debt on a credit card. Would your parents or siblings loan you some money, Spain isn't the cheap destination it once was but you will have a good holiday knowing that a credit card bill is not about to drop on your mat when you arrive back.

If you really are intent on borrowing then again the previous poster who suggested approaching your own bank gave sound advice.

Better still get a part-time job, that would let you earn the money..........voila, no debt.

Enjoy Ibiza.
Posted on 08 February 2009 | Love 0 loves Report
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Birtles posted
Just apply for some credit cards. Im pretty sure you'll get something.

Go wild have fun spend your borrowings. It'll be your last hoiday before you're working. Just make sure that you pay off your debts as quickly as possible once you're done.

I did exactly what you're planning on doing and am glad I did. The fact you've bothered coming to this site makes it more probablr that you're the kind of person who will treat their holiday debt carefully...
Posted on 08 February 2009 | Love 0 loves Report
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woodface7 posted
Quote: Birtles says:

Just apply for some credit cards. Im pretty sure you'll get something.

Yes. You'll get a bad credit rating.

A series of applications - especially rejected ones - will be flagged as high risk by credit reference agencies.

Max the student loans and free-ish overdrafts, borrow from family, and enjoy your break. Graduate engineers are one group where demand should outstrip supply for a long time to come.
Posted on 09 February 2009 | Love 0 loves Report

Will a promise of a job be sufficient to obtain a credit card when i have zero credit rating.

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